If you’re looking for a payday loan in Michigan, here’s what you need to know.
Payday loans can be an option if you need cash to pay for an emergency expense, but you’ll want to make sure you’re getting the best deal. Read our guide on payday loans in Michigan before you take one out to save yourself time and money.
Are payday loans legal in Michigan?
Yes, payday lending is legal in Michigan.
Section 487.2122 of the Michigan Compiled Laws, referred to as the Deferred Presentment Service Transactions Act (Act 244 of 2005), governs the functioning of payday lenders in this state.
Michigan law caps the maximum you can borrow at $600, and borrowers can have only two outstanding loans at once, either from the same lender or two different lenders. Terms are set at 31 days or less.
Consider these lenders for a short term loan in Michigan
Check the websites of any providers you’re interested in to confirm they operate in your state.
How a Michigan short term loan might help you
Here are some features to keep in mind when you’re making your decision.
- Bad credit is OK. Short term lenders tend to apply slightly less stringent lending criteria when compared to banks. Instead of looking only at your credit score, they take your existing financial situation and ability to repay into account.
- Applying is easy. Some Florida payday loan lenders have storefront loans, and others work entirely online, meaning you can apply from anywhere.
- Get money quickly. In-store applications can be processed the same day so you can see your money within hours. Online applications take 24 hours to process, but the money will be directly deposited into your bank account.
- Use the money for any purpose. What you choose to do with the money you get is basically up to you. You can use this money to travel, pay bills, repair your car or just to get by during a rough patch.
What fees and charges does a payday loan in Michigan comes with?
Michigan payday loan laws set the maximum fees you may end up paying. The fee structure of payday lending in this state looks like this:
- Rates and fees. A payday lender can charge a service fee not to exceed 15% of the first $100, 14% of the second $100, 13% of the third $100, 12% of the fourth $100, 11% of the fifth $100 and 11% of the sixth $100.
- Finance charges. The lender can also charge a database verification fee. The maximum finance charge of a 14-day $100 loan is limited to $15. The maximum APR of a 14-day $100 loan is 390%.
- Collection fees. A payday lender can charge one $25 NSF fee.
- Rollover fees. No rollover fees apply in Michigan.
How to apply for payday loan in Michigan
One option is to apply by walking into any payday lender’s store and the other is to submit an online application. In both cases, you have to meet these eligibility criteria:
- You should be at least 18 years old
- You should be a US citizen or a permanent resident
- You should have a regular source of income
To complete your application successfully, prepare to submit some basic information:
- Your name, date of birth, Social Security number and a valid form of ID
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Where else are payday loans available?
Compare payday loans in your state
Have more questions about Michigan payday loans?
What is the maximum loan term of payday loans in Michigan?
The maximum loan term is 31 days.
What is the maximum payday loan amount in Michigan?
You can borrow up to $600.
Can I get an extension on a payday loan in Michigan?
A lender can offer an extension on a payday loan, provided it does not charge any additional fee for the same. Keep in mind this extension can only be for an additional 61, and lenders are not required to grant an extension.
When can I get on a repayment plan?
If you get eight payday loans from any one payday lender in a 12-month period, you have the option to repay the eighth loan and every additional transaction in the given 12-month period through a written repayment plan, subject to terms and conditions.